WTI Crude Sinks More than 3% on Supply & Demand Outlook

Futures for the West Texas Intermediate grade of crude oil tumbled more than 3 percent in New York today while prices Brent crude also sank. There were plenty of reasons for drop due to prospects of lackluster demand and steady supply.

Talking about demand, the recent worse-than-expected economic reports from China were definitely negative for crude as the Asian nation is the world’s second biggest consumer of oil. Concerns about the situation with Greece and the overall health of the eurozone economy added to pressure on the energy market.

Turning to the supply side of the equation, things look no less negative for oil. With the OPEC‘s refusal to cut production and growth of already record US inventories, it seems that a global glut is inevitable.

March futures for delivery of WTI crude oil dipped as much as 3.84 percent to $50.83 per barrel as of 18:51 GMT on NYMEX today. Brent crude lost 2.01 percent to $57.17 per barrel on ICE.
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